Fee and Dividend vs. Cap and Trade

Caterina Lindman represented the Citizen’s Climate Lobby at the Waterloo Region Climate Consulation at Kitchener City Hall in August. CCL is a strong advocate for the Fee and Dividend carbon tax; which is why one of the things she spoke about was the CCL recommendation to begin with a $30 per tonne carbon tax in 2018, with annual increases of $10 per year.

Earlier this month the Canadian Government announced its plan to implement a Carbon tax.

“It will start at $10 per tonne and increase by $10 each year, up to $50 a tonne by 2022. Trudeau added that the tax will be revenue neutral for the federal government. Proceeds from the tax will be returned to the provinces where they were collected.

“Trudeau said that details regarding implementation will largely be left up to the provinces. Each jurisdiction should decide on whether they want a cap-and-trade system (the sort of scheme favoured by the Obama administration) or a direct price on greenhouse-gas emissions (like with B.C.’s system for taxing air pollution).”